The group discussed building codes and how other states handle windstorm pools, but quite often it returned to how the association funds how it pays claims after a storm. The association writes wind and hailstorm policies in the 14 counties along the Texas coast, including about 46,000 property owners in Nueces County.

Known as post-event bonding, the association issues a series of bonds with separate trigger points that are paid back after a storm hits.

In Texas, public bonds can be issued in three levels that can raise up to $2.5 billion in a given year, the first level coming only after the association has exhausted all money available from premium and other revenue sources and its Catastrophe Reserve Trust Fund.

A level one bond can raise $1 billion in a given catastrophe year and is paid back by policy premiums and other income collected by the association. Level two and level three bonds can raise up to $1 billion and $500 million each and are paid back through a combination of assessments to insurance companies and surcharges on non-windstorm policies in coastal counties.

Texas Insurance Commissioner Eleanor Kitzman told the group, which included representatives from the offices of both Gov. Rick Perry and Speaker of the House Joe Straus, that the problem with using policy premiums to pay back Class 1 bonds is that policy rates may have to be raised.

Lawmakers in 2009 came up with the post-event bonding structure.

Raising rates on policies, she said, may bring more private carriers back to the coastal areas but, as association policyholders start buying those private policies, the windstorm pool will shrink, placing more burden on those left in the windstorm pool that as of the end of last year was at about 255,000 policies.

She said such a Catch-22 scenario makes Class 1 bonding insecure, and therefore unpredictable.

State Rep. Larry Taylor, R-League City, said bonds are a big issue and more needs to be done during the upcoming 83rd Legislature on how they are repaid, but Texas is getting closer to a viable funding solution for the association that carries about $82 billion in liabilities.

Coastal Windstorm Task Force member Greg Smith, who provided the group an overview of the task force's legislative wish list, said that key to any windstorm legislation will be compelling coastal counties to enforce wind-resistant building standards.

"We're not asking counties to enforce building codes, we're asking them to enforce windstorm standards," he said.

He said county officials up and down the coastline expressed support for the idea.

State Rep. Todd Hunter, R-Corpus Christi, organized the meeting but was less involved Friday.

He said after the meeting that the technical aspects of windstorm reform will be researched as part of developing legislation to present to lawmakers in January.

"It's unifying to get something done," he said. "Rates and rating have not been resolved, but we at least have commitments that we will work to do something fair."